A settlement loan is an effective way to receive financial assistance if you’re the victim in a personal injury lawsuit case and are unable to work or earn an income. Before making the decision to apply for lawsuit settlement loans, there’s lots of valuable information you should know.
What is a Settlement Loan & How Lawsuit Settlement Loans Work?
You’ve been involved in a car accident and have filed a lawsuit against the other driver, who was found to be at fault. You’re unable to work or earn an income, but still have financial obligations to meet. Strapped for cash, you discover that a lawsuit settlement loan could be an affordable way to keep money coming in to cover everyday expenses until your lawyer is able to secure a monetary settlement from the lawsuit.
After evaluating financial options available to you such as credit cards, lines of credit, bank loans or borrowing from friends and family, you determine that a settlement loan is a right option for you. You apply for lawsuit loans Canada from a settlement loan provider, and if the lender determines your case meets its approval criteria, the terms of your loan are agreed upon and the funding is advanced to you. The value of the lawsuit loan, plus interest, is repaid to the lender once a settlement is reached in the lawsuit.
Before Applying for a Settlement Loan…
Let your lawyer know your intentions. Doing so helps your law firm be prepared if the settlement lenders request any documentation about your case. The entire process can occur between your lawyer’s office and the funding company. Keeping them informed goes a long way in ensuring you’re approved for a lawsuit settlement loan and receive your funding quickly.
Ask about the loan’s interest rate. Doing so helps you determine the total value of the lawsuit loan and whether or not it’s a viable option that assists you, and not the other way around. It’s also good to know if the loan’s interest rate fluctuates over time as many other lenders introduce teaser rates for the first year, which then drastically increase over time, meaning the total interest owing is significantly higher.
At CaseMark Financial, the interest rates on our lawsuit settlement loans actually depreciate over time to help you save on the total cost of borrowing.
Do the settlement lenders charge any administrative fees or charges outside of interest incurred?
Be aware of any fees involved, and whether or not they’re deducted from the initial loan proceeds or added they’re added to the principal (in this case, the borrower would accrue more interest over time). Some settlement lenders can charge admin fees as high as 20% of the loan, which is deducted from the loan proceeds. In this case, someone borrowing $5,000 would only actually receive $4,000, but pay interest on the full value of the loan. settlement lenders often include complex language in the loan documents that allow them to charge hidden fees amounting to thousands of extra dollars when the settlement loan is repaid.
CaseMark charges only a $250 flat-rate fee on staged- and lump-sum options, no matter the value of the loan.
Equip Yourself with the Knowledge You Need to Make the Process Easy
Educating yourself about the particulars of your claim and the services offered by lenders goes a long way in making the settlement loan application process much simpler and more efficient, getting money in your hands sooner rather than later.
If you’re a plaintiff in a personal injury lawsuit case and are unable to work, CaseMark Financial can provide the financial assistance you need until a settlement is reached.
Reach out to speak the best lawsuit loan company today at (416) 477-3346, or visit our website to start our quick and simple 4-step loan application process.